The competition in the business world is as tough as it’s ever been. Companies have to deal with rapid digitalization, administration problems, and new names entering the playing field on a daily basis. ICSID shares that e-commerce businesses have an average failure rate of 80% despite it being one of the largest industries. The restaurant industry on the other hand has a high failure rate too at 30%. It’s a bit lower, but still very concerning for budding entrepreneurs.
However, there are some companies that have risen past these difficulties and raised their survivability with the help of a secret weapon. What is this weapon, you may ask? It’s strong branding, and here’s why…
Why Company Branding Matters
Creating impactful branding for businesses involves a lot of dialogue between management, marketing, and other sectors in the company. However it actually starts with the company name. In ‘What’s in a Name?’ Melissa Hughes Ph.D. reiterates that the most effective brands have an identity that consumers connect with. A company name can send a direct or indirect message to the public conveying its purpose for existing. Most importantly, a name can strongly influence first impressions.
Company Names Can Evoke Memories
Studies have shown that memory recall is a superior method of advertising and keeps companies relevant. In a study published on Research Gate, it was revealed that brands that invoke strong images are able to influence customers’ choices. For instance, Coca-Cola and Nintendo don’t really say much through their brand names, but customers are immediately able to recall memories and experiences they associate with them.
Creative Names Can Draw Curiosity
People connect with brands in different ways. Companies can also draw in customers using a creative name. A creative name can also imply that said company likes to think out of the box and bring something new to the table. For instance, using this Business Name Generator will allow you to play around with any initial ideas your company might have, and eventually help you expand on these ideas across marketing, advertising, and design.
A Good Name Shows Good Business Strategy
Some brand names are able to communicate their company’s exact business strategy. Things like target market, status in the current market, or a company’s take on the industry can be deciphered through their brand names. To demonstrate, Prada and Miu Miu are both in the same group, with the latter being a subsidiary of the former. However, it’s quite obvious through its name that Miu Miu targets a younger demographic, and its items are also sold at a lower price point.
Names Can Show a Company’s Core Values
According to a report conducted by Twitter, Gen Z consumers want to support brands that align with their values. While this can be found in one’s vision and mission, companies that communicate their values through their name certainly gain a competitive advantage. Rare Beauty by Selena Gomez, for example, echoes her album of the same name and her desire to make products that highlight one’s unique and rare features through makeup. Similarly, Reformation is a fashion brand that seeks to reform the industry through sustainability.
Competition between businesses will become progressively harder now that we live in such a highly digital era, but this can be a good thing. The more customers come across your name online, the more chances you’ll get to leave a good first impression. Ultimately, your brand name encapsulates your company’s identity, making it a vital part of your overall ability to survive and thrive in the marketplace.